Problem
Best House Cleaning is estimating their fixed and variable costs in operation. The following costs were incurred during the month of January in 2013 by Best House Cleaning when (250 + D_8) homes were cleaned: Assume the cost-capacity factor (X) is 0.34 and an average of 12% increase in the cost index per year over the past few years.
(b) Determine the total cost equation for Best House Cleaning.
(c) Determine the average cost equation for Best House Cleaning.
(d) Estimate what would be the total cost for operating the same capacity in year 2017.
(e) Determine the total cost of operating a larger business scale with annual capacity of cleaning 4, 200 homes in year 2017 along with the integration of additional cleaning equipment at an estimated cost $80,000.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.